Question

when the long run equilibrium of firm and industry under equal cost is determined?
​

Answer 1

Answer:

Explanation:

The industry is in equilibrium in the long-run when all firms earn normal profits. There is no incentive for firms to leave the industry or for new firms to enter it. With all factors homogeneous and given their prices and the same technology, each firm and industry as a whole are in full equilibrium where LMC = MR = AR (-P) = LAC at its minimum.

Such an equilibrium position is attained when the long-run price for the industry is determined by the equality of total de­mand and supply of the industry.